The in-house legal team at Terraform Labs resigned shortly after the collapse of Terra’s algorithmic stablecoin and its native token, which cast a shadow of doubt on the cryptocurrency space as a whole.
This is according to a report by The Block, citing a person familiar with the matter, who stated that the legal operations are now being handled by outside counsel.
The LinkedIn profiles of Terraform Labs’ general counsel, Marc Goldich; chief corporate counsel, Lawrence Florio; and chief litigation and regulatory counsel, Noah Axler show that all three stopped working for the company in May, after less than a year at the company.
What you should know
- News of the resignations comes after the collapse of the Singapore-based Terraform Labs and the blockchain it stewards, the Terra blockchain.
- A spokesperson for the company stated, “The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days. The vast majority of team members remain steadfastly committed to carrying out the project’s mission. Terra is more than UST, with an incredibly passionate community and a clear vision on how to rebuild. Our focus is now on executing our plan to revive the Terra ecosystem.”
- Terra’s UST, which was once the third-largest stablecoin by market capitalization, de-pegged sharply from its target price of $1 early last week.
- Billions of dollars in bitcoin were sold and unprecedented volumes of Terra’s native currency LUNA were issued in a frantic attempt to restore the peg but to no avail.
- This caused the price of both UST, and its native token, LUNA to collapse, with LUNA which traded at an all-time high of almost $120 per token in April, now currently trading below a cent.
- As a way to salvage the situation, Terra halted its blockchain twice and investors have sustained heavy losses.
CZ, the CEO of Binance, revealed that his $3 million participation in building Terra gave his company 15 million units of LUNA which at peak value was worth $1.6 billion. These tokens are now worth $3,000.
In the wake of last week’s chaos, Kwon has been promoting a plan to fork Terra to create a new blockchain, but the community seems set against the idea.